This question illustrates the accelerator effect. Let WQ equal the number of widgets consumed in a year.
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This question illustrates the accelerator effect. Let WQ equal the number of widgets consumed in a year. Every 1,000 widgets require a widgetmaking machine to produce them. Let WMMQ be the number of machines. These machines are well built and last forever. Fill in the following table, and explain how the table illustrates the accelerator effect.
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The demand for new machines ie investment demand depe...View the full answer
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